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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from ad valorem taxation of the residence |
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homesteads of certain life tenants. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13(j), Tax Code, is amended to read as |
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follows: |
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(j) For purposes of this section: |
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(1) "Residence homestead" means a structure |
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(including a mobile home) or a separately secured and occupied |
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portion of a structure (together with the land, not to exceed 20 |
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acres, and improvements used in the residential occupancy of the |
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structure, if the structure and the land and improvements have |
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identical ownership) that: |
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(A) is owned by one or more individuals, either |
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directly or through a beneficial interest in a qualifying trust; |
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(B) is designed or adapted for human residence; |
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(C) is used as a residence; and |
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(D) is occupied as his principal residence by an |
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owner, a surviving spouse who is a life tenant, or, for property |
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owned through a beneficial interest in a qualifying trust, by a |
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trustor of the trust who qualifies for the exemption. |
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(2) "Trustor" means a person who transfers an interest |
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in residential property to a qualifying trust, whether by deed or by |
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will, or the person's spouse. |
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(3) "Qualifying trust" means a trust: |
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(A) in which the agreement, will, or court order |
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creating the trust provides that the trustor of the trust or the |
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beneficiary of the trust if created by court order has the right to |
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use and occupy as the trustor's or beneficiary's principal |
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residence residential property rent free and without charge except |
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for taxes and other costs and expenses specified in the instrument |
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or court order: |
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(i) for life; |
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(ii) for the lesser of life or a term of |
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years; or |
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(iii) until the date the trust is revoked or |
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terminated by an instrument or court order that describes the |
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property with sufficient certainty to identify it and is recorded |
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in the real property records of the county in which the property is |
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located; and |
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(B) that acquires the property in an instrument |
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of title or under a court order that: |
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(i) describes the property with sufficient |
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certainty to identify it and the interest acquired; |
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(ii) is recorded in the real property |
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records of the county in which the property is located; and |
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(iii) in the case of a trust that is not |
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created by court order, is executed by the trustor or the personal |
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representative of the trustor. |
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(4) "Surviving spouse" has the meaning assigned by |
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Section 11.131. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2014. |